Quickbooks reports by class for flipping

I hate to ask another question about Quickbooks on the forums but after reading numerous threads I haven't been able to get an answer for my situation.

I recently had someone from my CPA's office help me to set up Quickbooks (my version is QB for Mac 2014). I have been dutifully entering in all of my transactions as I was taught, but I haven't been able to figure out how to see basic information regarding the current status of each project. I mainly just want to know how much I have currently spent on the rehab, holding costs, etc of any specific flip.

Basically all of the costs for a flip project are going into the inventory account, which has a bunch of sub-accounts. The way I understood her reasoning was that when the properties are sold they will be moved over to COGS. Here is what the Inventory account looks like:

Inventory (Other Current Asset)

-Purchase Costs

-Purchase Price

-Closing Costs, etc

-Holding Costs

-Utilities, etc

-Rehab Costs

-Labor, Materials, etc

I have created classes for each project and have been assigning each transaction to the proper class.

Is there a way for me to see all of the current costs associated with each class? It seems that I can't get a report showing a balance sheet by class (unless I have an enterprise version of QB). Do I need to have all of the costs except for the purchase price be in an expense account (rather than the current Other Current Asset accounts) in order to get any useful reports? Or, could I more easily accomplish this by using the Customer:Jobs feature? There are a lot more reports available by job than there are by class.

There should be a report called profits and losses by class. Each class should be a house. If its setup that way, then you can get a snapshot of how your project going. I'm on my phone, but if you need help I can attach a screen shot later.

I hate to ask another question about Quickbooks on the forums but after reading numerous threads I haven't been able to get an answer for my situation.

I recently had someone from my CPA's office help me to set up Quickbooks (my version is QB for Mac 2014). I have been dutifully entering in all of my transactions as I was taught, but I haven't been able to figure out how to see basic information regarding the current status of each project. I mainly just want to know how much I have currently spent on the rehab, holding costs, etc of any specific flip.

Basically all of the costs for a flip project are going into the inventory account, which has a bunch of sub-accounts. The way I understood her reasoning was that when the properties are sold they will be moved over to COGS. Here is what the Inventory account looks like:

Inventory (Other Current Asset)

-Purchase Costs

-Purchase Price

-Closing Costs, etc

-Holding Costs

-Utilities, etc

-Rehab Costs

-Labor, Materials, etc

I have created classes for each project and have been assigning each transaction to the proper class.

Is there a way for me to see all of the current costs associated with each class? It seems that I can't get a report showing a balance sheet by class (unless I have an enterprise version of QB). Do I need to have all of the costs except for the purchase price be in an expense account (rather than the current Other Current Asset accounts) in order to get any useful reports? Or, could I more easily accomplish this by using the Customer:Jobs feature? There are a lot more reports available by job than there are by class.

Cooper - Everyone has a different way to use QuickBooks - just as everyone has a unique way to make a flip deal. Customize your report - here are quick steps:

-- Run a Balance Sheet Report

-- Click on Customize or Modify report

-- Filter by Class and select your property

-- Run the report and Memorize for future use

I would try checking out the report Balance Sheet by Class (only available in Premier, Accountant and Enterprise versions) Go back to your CPA and ask them.

There should be a report called profits and losses by class. Each class should be a house. If its setup that way, then you can get a snapshot of how your project going. I'm on my phone, but if you need help I can attach a screen shot later.

Don't think this will work as all of the costs are being accounted for in Inventory - not a P&L account.

I hate to ask another question about Quickbooks on the forums but after reading numerous threads I haven't been able to get an answer for my situation.

I recently had someone from my CPA's office help me to set up Quickbooks (my version is QB for Mac 2014). I have been dutifully entering in all of my transactions as I was taught, but I haven't been able to figure out how to see basic information regarding the current status of each project. I mainly just want to know how much I have currently spent on the rehab, holding costs, etc of any specific flip.

Basically all of the costs for a flip project are going into the inventory account, which has a bunch of sub-accounts. The way I understood her reasoning was that when the properties are sold they will be moved over to COGS. Here is what the Inventory account looks like:

Inventory (Other Current Asset)

-Purchase Costs

-Purchase Price

-Closing Costs, etc

-Holding Costs

-Utilities, etc

-Rehab Costs

-Labor, Materials, etc

I have created classes for each project and have been assigning each transaction to the proper class.

Is there a way for me to see all of the current costs associated with each class? It seems that I can't get a report showing a balance sheet by class (unless I have an enterprise version of QB). Do I need to have all of the costs except for the purchase price be in an expense account (rather than the current Other Current Asset accounts) in order to get any useful reports? Or, could I more easily accomplish this by using the Customer:Jobs feature? There are a lot more reports available by job than there are by class.

Cooper - Everyone has a different way to use QuickBooks - just as everyone has a unique way to make a flip deal. Customize your report - here are quick steps:

-- Run a Balance Sheet Report

-- Click on Customize or Modify report

-- Filter by Class and select your property

-- Run the report and Memorize for future use

I would try checking out the report Balance Sheet by Class (only available in Premier, Accountant and Enterprise versions) Go back to your CPA and ask them.

Thanks Gita! Filtering by Class on the balance sheet gives me more or less what I am looking for. Not sure how the Balance Sheet by Class report would be any different but I'll make do using the filter.

I hate to ask another question about Quickbooks on the forums but after reading numerous threads I haven't been able to get an answer for my situation.

I recently had someone from my CPA's office help me to set up Quickbooks (my version is QB for Mac 2014). I have been dutifully entering in all of my transactions as I was taught, but I haven't been able to figure out how to see basic information regarding the current status of each project. I mainly just want to know how much I have currently spent on the rehab, holding costs, etc of any specific flip.

Basically all of the costs for a flip project are going into the inventory account, which has a bunch of sub-accounts. The way I understood her reasoning was that when the properties are sold they will be moved over to COGS. Here is what the Inventory account looks like:

Inventory (Other Current Asset)

-Purchase Costs

-Purchase Price

-Closing Costs, etc

-Holding Costs

-Utilities, etc

-Rehab Costs

-Labor, Materials, etc

I have created classes for each project and have been assigning each transaction to the proper class.

Is there a way for me to see all of the current costs associated with each class? It seems that I can't get a report showing a balance sheet by class (unless I have an enterprise version of QB). Do I need to have all of the costs except for the purchase price be in an expense account (rather than the current Other Current Asset accounts) in order to get any useful reports? Or, could I more easily accomplish this by using the Customer:Jobs feature? There are a lot more reports available by job than there are by class.

Cooper - Everyone has a different way to use QuickBooks - just as everyone has a unique way to make a flip deal. Customize your report - here are quick steps:

-- Run a Balance Sheet Report

-- Click on Customize or Modify report

-- Filter by Class and select your property

-- Run the report and Memorize for future use

I would try checking out the report Balance Sheet by Class (only available in Premier, Accountant and Enterprise versions) Go back to your CPA and ask them.

Thanks Gita! Filtering by Class on the balance sheet gives me more or less what I am looking for. Not sure how the Balance Sheet by Class report would be any different but I'll make do using the filter.

Glad to help Cooper. Well - you will be able to see all the properties in one report. A quick access to what you need. You can see the power of .....

I have Quickbooks Pro, so a balance sheet by class is not accurate, that's what Intuit says anyway.

To avoid the balance sheet by class I created all those sub-accounts you mentioned for each property. That way I don't have to look at a balance sheet that is inaccurate and I can see at a glance the expense breakdown for each property simply by looking at the chart of accounts, no need to run any reports. You can of course run all the reports by class same as before.

I suppose it can get a little clunky if you have a lot of properties but for now I like it.

@Gita Faust - Gita, is there any "quick reference" guide or tips or something that would give someone a fast overview of how to use quickbooks for real estate? Assuming one already has the basics of quickbooks figured out, I mean ... like a top 10 tips with instructions for each tip, something like that? I have the basics down, and I have an accountant that can help, but he's not an expert on real estate or on quickbooks. It seems like taking a class is overkill based on how close I think we are to being able to get it right, but those few tips would make all the difference for us.

Sometime a class can be an overkill, but the details are in the basic and setup. Then it is all about what you are looking to do, who is entering the details, who is checking the reports.

Remember you are running a business - not a hobby. Invest in it, Invest in your education, Learn the right way, the first time and stop playing the monopoly guessing game.

Here are quick 10 tips: made it a dozen

1. Do NOT do NOT use Journal Entry (except for entering depreciation at year end)

2. Do NOT do NOT use Transfer Fund feature

3. Make sure each and every transaction has a name - customer or vendor name

11. As to name merge the duplicates. Home Depot LLC, HomeDepot, The Home Depot. Now your file runs slower, reporting is wrong for Home Depot and more

12. Do NOT do NOT use Other Name - change them to Vendor or Customer

4. Break down the principal, interest, escrow for each transaction - NOT at tax time. You are paying more to your account to do the work. and guess what your financials are wrong if you do not

5. Use Classes for each property and then check the Unclassified report by Profit & Loss and Balance Sheet

6. Which do you prefer? Make it look pretty it. Make it easy on the eyes

ALL CAPS - All Caps - all caps - ALL caps

Here is an email I received. I will make it short. "We had a 3 hour meeting to close a Million dollar deal on a commercial property with two investors who were partners who agreed on the deal. Per your suggestion we presented Steve a report with our messed up names and Jack with all All Caps. Steve said no and Jack said we are investing smiling. I asked Steve the reason, you are not consistent and I do not see if there is any future in our investment. Jack said what are you talk about. See the report. Remember we did have the deal sealed - it is not a chance we took. We spend 5 hours fixing our caps and Thanks again. The details is in the devil." I can see you nodding your head saying no way Gita you are crazy.

Remember you are running a business - it is not a hobby. Invest in it, Invest in your education, Learn the right way, the first time and stop playing the monopoly guessing game.

7. Use document management software that works with QuickBooks to tag all documents

8. If you make a mistake be consistent. That way it is easy to fix and identity the error.

9. Hire someone who is experienced in doing the work for you. If you time is worth $200.00 an hour - you can afford to pay someone at maximum $100.00 an hour. With that one hour you can find the next profitable deal which may make you a millionaire :) For eg, would you hire an electrician who is not licensed to do the work?

10. Make an appointment on your calendar to review your reports on a daily basis. It takes only 10 minutes.

11 and 12 see below 3.

Just got an email from one of my real estate client - we saved him $10,000 in taxes for 3 years after filing revised returns. Ya!

What is your end goal in using any software including QuickBooks:

- is it to do your taxes?

- is it to see which property is profitable?

- is it to see if each penny you spend is the right amount you estimated before you purchased the property?

- my list is so big by now all questions asked by clients and prospects.

Yes we have so much information on our blog, you can find over 100's of tips on using QuickBooks which you can use.